Income Tax Appellate Tribunal Cannot Pass Ex-Parte Orders Without Recording Reasons For Denying Adjournment: Allahabad High Court
While hearing an appeal under S. 260A of the Income Tax Act, the Allahabad High Court has held that the Income Tax Appellate Tribunal cannot reject adjournment applications and pass ex-parte orders without recording reasons for such dismissal. It was held that if the Tribunal was allowed to do such a thing, it would hamper the right of the parties to a reasonable opportunity...
While hearing an appeal under S. 260A of the Income Tax Act, the Allahabad High Court has held that the Income Tax Appellate Tribunal cannot reject adjournment applications and pass ex-parte orders without recording reasons for such dismissal. It was held that if the Tribunal was allowed to do such a thing, it would hamper the right of the parties to a reasonable opportunity of hearing.
“While inordinate delays in judicial decision making is not healthy and expeditious disposal of the proceedings is a goal that all Courts, Tribunals and Authorities may pursue, at the same time, they may remain conscious of their non-negotiable commitment to afford reasonable opportunity of hearing to the parties before such judicial decision making is achieved,” held the division bench comprising Justice Saumitra Dayal Singh and Justice Indrajeet Shukla.
In the present case, the appeals before the Tribunal were filed in 2025. They were listed on two dates, within a period of two months. The petitioner had obtained adjournments on both dates. The first was granted, while on receiving the second, the court passed an ex-parte order against his interest without recording reasons.
The Court held that despite the first adjournment, the petitioner remained entitled to recording of reasons for rejection of the second application. It found that in the present case, the non-recording of reasons was prejudicial to the interests of the assessee, especially given the fact that the hearing was concluded on the same day itself.
Accordingly, the appeal was allowed.
Case Title: Ashok Kumar Agarwal v. The Assistant Commissioner of Income Tax [INCOME TAX APPEAL No. - 77 of 2025]